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Greedy iPhones Gobble The Flash Print E-mail
Written by Adam Gosling   
Thursday, 19 July 2007
Apple iPods and iPhones are reportedly using a quarter of the worlds supply of Flash memory says Taiwan memory researcher DRAMeXchange.

Apple iPods and iPhones are reportedly using a quarter of the worlds supply of Flash memory says Taiwan memory researcher DRAMeXchange.

The market research company says Apple's position as a dominant customer for the world's NAND memory means it can get a good deal on the silicon storage from manufacturers - most notably Samsung which is the worlds largest maker of the storage chips that can remember their contents even when the power is switched off.

Not only is that driving the cost down for Apple, but it is ensuring it gets its supply first in a tight market.

DRAMeXchange says this is bad news for other makers of mobile devices because there might not be enough to go around this quarter as manufacturers are migrating to a new higher-density manufacturing process.

Often when silicon foundries transition to a new process in such a way, there are hiccups which affect yield reducing supply. As this is reducing supply Apple is consuming a larger proportion of the available Flash because its needs are met ahead of other mobile phone and MP3 player manufacturers.

It is all conspiring to drive the cost of Flash up, says the researcher, with March prices up by as much as 7 per cent. The second major increase for the year and likely to start flowing through to consumers soon.

"Production snags in the migration to more advanced NAND Flash manufacturing processes has led to a lower-than-expected output," DRAMeXchange. "At the same time, with the iPhone and iPod set to consume a significant amount of flash chips, the market has grown wary that a shortage may occur. In the near term, prices are expected to continue rising."

It could take more than half a year for all this to pass and the bulk of Flash factories to start pumping out enough volume to ease the price a little.


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